7 mules, agents arrested for aiding theft of Rs 22 crore from TN Rural Development Department bank account

CHENNAI: Days after the audacious theft of Rs 22.3 crore from Tamil Nadu Rural Development Department’s bank accounts, the Central Crime Branch (CCB) of Greater Chennai Police arrested seven persons from different parts of the State.

The money was stolen from the funds for a scheme maintained in a Single Nodal Account at the HDFC Bank branch at CIT Nagar, Chennai, and operated only online through user IDs and passwords issued to authorised Block Development Officers (BDOs).

Between October 12 and 30, unidentified cyber criminals misused the user credentials of authorised officials of the Keelayur Panchayat Union in Nagapattinam district, Mandapam Panchayat Union in Ramanathapuram district, and Dharapuram Panchayat Union in Tirupur district, and transferred a total of Rs 22.3 crore in 46 transactions from the account to 25 different bank accounts.

Following a complaint, the cybercrime wing registered a case on November 3. During the investigation, a team led by inspector Velmurugan examined the online transactions and traced those who received the defrauded government money in bank accounts, withdrew it in cash, and transferred it to other accounts.

The police secured Chellapandian (56) and Karumbu Annadurai (56) from Chennai, and Loganathan (65) from Bengaluru. Based on the information gathered after questioning them, the police arrested our others – Abdul Rahman (28) and Jagadeesh (31) from Madurai, and Ashraf Ali and Kannadsan from Sivaganga - for their alleged involvement in the crime.

"Four of the arrested persons were mule account holders while others are agents. Further investigation is under way and their bank accounts have been frozen," said an official part of the investigation team.

Seven mobile phones, 14 SIM cards, bank cheque books, and bank passbooks were seized from the arrested persons.

Chellapandian, Annadurai, and Loganathan were produced before the Metropolitan Magistrate Court, Saidapet, and remanded in judicial custody. Rahman, Jagadeesh, Ali, and Kannadasan, who received the fraudulently obtained money in various bank accounts, are being interrogated by the cybercrime police. Officials said efforts are on to recover the lost money.

GCP Commissioner A Amalraj appreciated the cybercrime police team for their efforts. The Commissioner advised officials handling internet banking services of government departments and institutions not to share their user IDs, passwords, OTPs, or official email details with anyone. He also told them to change passwords periodically, use multi-factor authentication, and to monitor account transactions daily.

He also advised that bank accounts and banking portals used by government departments and institutions should be secured with cyber security features and CERT-In certification.